NEW DELHI: Apex telecom tribunal TDSAT on Friday extended significant relief to Vodafone Idea and Bharti Airtel.
While telecom regulator TRAI will continue its enquiry into their new priority data plans for mobile customers, the tribunal has issued an interim stay on TRAI's order to halt onboarding new customers.
The direction allows the telcos to continue acquiring new customers for these packages until the TRAI enquiry is complete and final orders are passed.
The decision comes after Vodafone Idea Ltd (VIL) approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) praying for relief from the TRAI order. According to submissions made in court, the TRAI enquiry and the subsequent order came in the wake of a letter sent by Reliance Jio to the regulator on July 8, raising concerns on competitor VIL’s RedX plan.
While the tribunal had held its first hearing in the matter on July 14, it had only asked TRAI to file a reply to VIL’s arguments within two days.
On Friday, following the "short reply" from TRAI, the tribunal ruled that the enquiry into these plans should continue and did not require any interference.
According to the TDSAT order, TRAI and Reliance Jio both had argued that offering a "higher or any pre-determined speed for data transfer" through wireless systems was not technically feasible. Thus, they said, "it would not be proper" to allow VIL to acquire subscribers on the basis of "advertisements... assuring higher speed".
TRAI had also submitted that the inquiry into these plans can be completed in 15 days if telcos file their responses on time. An interim order would not have much effect in this period, TRAI had said.
While the tribunal agreed on TRAI's powers to conduct the enquiry, it also noted that the "assurance of a priority 4G network" has not been found to violate any of TRAI's directives on tariffs "even prima facie".
As for the promise of higher speeds, the tribunal said that VIL's RedX plans had been modified on May 13 -- no longer offering a 50 per cent higher speed but only a "priority 4G network".
"The only justification that suspension would facilitate detailed examination by TRAI is found to be devoid of any merits. During submissions also it has not been shown that for detailed examination by TRAI it is necessary to withhold/suspend the Vodafone RedX offer forthwith," TDSAT observed, issuing an interim stay on the TRAI order.
The matter has been posted for further direction on August 17. The tribunal has also asked VIL to file its response to TRAI's questionnaire by July 22.
Priority plans in regulatory mire
The TRAI enquiry into Vodafone Idea's RedX plan and Airtel's Priority 4G Network for Platinum customers is examining whether the two offerings would lead to a deterioration in the quality of service for other customers.
Analysts note that fixed-line broadband plans offering better services for customers willing to pay more already exist. These do not, as such, violate net neutrality conditions.
However, industry sources also admit that fixed-line broadband internet providers can assure specific speeds to fixed line customers. The same cannot be done with wireless telephony technology, industry sources say, since all customers receive the same radio signal from the relevant mobile tower for that location.
The TRAI enquiry will seek to examine whether such plans offering higher "priority" for extra cash will come at the cost of poorer service quality for other customers on the network.
Preferential data speeds for premium plans are new items on the menu for Inda’s mobile internet users.
VIL had launched the RedX plan in November last year at Rs 999 a month, only for postpaid customers. The plan initially offered up to 50 per cent faster internet speeds and other special services. With telcos desperate to ramp up profitability, May had seen the firm hike the plan's prices by Rs 100, and change its offering to a Priority Network service.
Airtel, for its part, had launched a similar service early this month for Platinum postpaid plan users starting at Rs 499 per month.
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